Latest property report
Auckland values have dropped 0.5% in the last month according to the latest QV house price index. Across wider Auckland, values dropped by 0.5% to $928,921 at the end of January compared to a month earlier.
However, over the past three years, house prices have increased 52% in Auckland, and around 11% in the rest of New Zealand. Read more about this here.
The more central areas of North Shore, Waitakere, Auckland City and Manukau have all dropped, while Rodney, Papakura and Franklin towards the edges of Auckland are all still increasing (although the rate has slowed).
It remains our view that Auckland values will not drop far and they won’t drop for long. Although it appears the efforts by the Government and The Reserve Bank to slow the rate of Auckland value increase are making a difference, mortgage interest rates remain extraordinarily low and there is still a lack of listings with record high levels of migration.
CoreLogic also believes that Chinese buyers will return to the market within a few months after a noticeable absence from the market.
Meanwhile, values continue to increase strongly in the areas surrounding Auckland. Whangarei, Hauraki, Matamata-Piako, Waipa and Western Bay of Plenty have all increased by around 6% in just the last three months. Hamilton City is increasing at a staggering 9.2% in three months, and Tauranga values continue to increase quickly, up 8.6% over the last three months.
CoreLogic anticipate that we are likely to be in for a fascinating year, with some twists and turns still to come.
I reiterate, though: over the past three years, house prices in Auckland have increased 52%!